"If she was to directly interfere and breach that charter, it would actually lead to a crisis of confidence among the readership and if the readership deserted, then the share price for every shareholder would decline," Mr Conroy said.

Mr Swan said: "I think that has very big implications for our democracy, I think we should all be very concerned at this turn of events."

"She certainly has a commercial right to do what she has done, but it appears to be that she will go a step further, not respect the charter of independence, and reserve her right to direct journalists with instructions that follow her commercial imperatives."

Fairfax, one of Australia's biggest media companies, announced major changes on Monday as part of cost-cutting measures to save A$235m ($237m, £151m) annually by mid-2015.

Aside from the job cuts, two printing facilities in Sydney and Melbourne are to be closed by 2014.

The Age and The Sydney Morning Herald broadsheets are also going tabloid, with its websites adopting pay walls from 2013.